Banks cut deposit rates as CPI declines
http://www.tuoitrenews.vn/cmlink/tuoitrenews/business/banks-cut-deposit-rates-as-cpi-declines-1.100630
Wednesday saw many banks simultaneously slash deposit interest rates, while the Ho Chi Minh City Statistics Office announced a slight decrease in the city’s consumer price index.
The interest rate for deposits of a term between one and three months at Vietcombank was lowered from the rate cap of 8 percent a year to 7.5 percent a year.
The country’s third-largest partly-private lender also dramatically cut the rate for deposits of a term of over 12 months, dropping it from 10.5 percent to 9.5 percent.
ACB meanwhile imposed a 0.2 percentage point cut on rates for one- to six-month terms, while offering a 7.6 percent a year rate for 9-month term deposits.
Some industry insiders, however, believe the unexpected interest rate cuts were a sign of banks embracing another order to slash rates by the State Bank of Vietnam.
The banking system is likely to see another interest rate adjustment, as the government has recently asked the central bank to continue lowering deposit interest rate in order to reduce lending rates. The deposit interest rate was capped at 8 percent last year under the government’s bid to assist businesses with lower lending rates.
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